Doing business in Brazil

In the last few years, Brazil has emerged as a stronger and more attractive global player. A high degree of economic diversification, combined with a strong domestic consumer market and a broad selection of trading partners, bolstered by a well regulated financial system, have been keys to successfully mitigating the effects of the international economic crisis.

Brazil is the world’s fifth largest country. With an estimated population of 194 million in 2012, it is also the world’s fifth most populous country after China, India, the United States and Indonesia. The Brazilian economy is large by almost any standard. Brazil has the 7th largest economy in the world in terms of Gross Domestic Product (GDP) derived from purchasing power parity (PPP) calculations (Source: International Monetary Fund´s (IMF´s) World Economic Outlook Database, October 2012).

Brazil has undergone several programs of privatization of state-owned companies, with the biggest taking place in 1998 when the state-owned telecommunication companies were sold. There continues to be considerable state and semi-state participation in various strategic sectors, such as transport and utilities. Natural resources and agriculture have been the traditional mainstay of the economy, supported by abundant human resources. Since the 1960s, however, an emphasis has been placed on industrial development, financed largely by international loans and investments. As a result, exports today reflect a much more balanced mix of commodities and manufactured items.

Brazil has a very rich biodiversity, abundant agricultural, mineral and energy potential, enormous internal growth potential, broad industrial base and infrastructure and a diversified economy. Brazil’s population is roughly 194 million (2012) and estimated to be growing at about 1.17% per year. Unemployment in Brazil is low, wages are rising and the level of foreign direct investment is high. There are plenty of opportunities, particularly in agribusiness, oil and gas, mining, retail, capital projects and infrastructure, and in catering to a growing demand for education and healthcare.

PwC Brazil has approximately 5.000 professionals who provide assurance, tax and advisory services from 17 offices located throughout the country.